Calculating the Tick Value in Currency Futures (2021)

I’m often asked by traders how to calculate the tick and pip value in forex trading.

In this article, I’d like to take a closer look at currency futures and provide an explanation of “tick value” as it is commonly used in futures trading.

In a later article, we’ll discuss pip value, which is what the tick value is called in interbank currency trading.

Calculating the tick value for currency futures contracts

The best-known currency futures contract is probably Euro FX Futures, which is listed on the Chicago Mercantile Exchange (CME) and can be traded 24 hours a day through its Globex electronic trading system.

  • The ticker symbol is 6E.

With this currency futures contract, you trade the euro against the US dollar.

  • The contract size is 125,000 euros

Quotes are given to four decimal points – e.g. $1.3110.

The smallest price change, called a tick, is thus fixed at 0.0001.

The tick value is $12.5 ($0.0001 x 125,000/contract).

If you multiply the current exchange rate by the contract size, you get the current contract value.

Assuming a dollar exchange rate of 1.3110, one futures contract has a value of $163,875 (1.3110 x the contract size of 125,000).

The following table shows contract size, tick size, and tick value for the most important forex futures.

In currency futures trading, all currencies trade against the US dollar:

Currency futureTickerContract sizeTick sizeTick value/contractMargin
Euro FX6E125,000 EUR0.0001 USD per EUR12.5 USD2,500 USD
Swiss Franc6S125,000 CHF0.0001 USD per CHF12.5 USD2,625 USD
British Pound6B62,5000 GBP0.0001 USD per GBP6.25 USD1,837 USD
Japanese Yen6J 12,500,000 JPY0.000001 USD per JPY12.5 USD2,851 USD
Canadian Dollar6C100,000 CAD0.0001 USD per CAD10.0 USD1,422 USD
Australian Dollar6A100,000 AUD0.0001 USD per AUD10.0 USD1,668 USD
New Zealand Dollar6N100,000 NZD0.0001 USD per NZD10.0 USD1,688 USD
Mexican Peso6M500,000 MXP0.00001 USD per MXP5.0 USD2,225 USD

If you have any questions about tick value, please post them in the comments section below.

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